DRDGOLD announces increase in reserves and resources
21 August 2008
Johannesburg, South Africa, 21 August 2008. DRDGOLD Limited (JSE: DRD; NASDAQ: DROO) CEO John Sayers today announced a 25% increase in attributable ore reserves from 6.3 million ounces (Moz) in 2007 to 7.9Moz in 2008 as well as a slight increase in mineral resources, up from 54.2Moz in 2007 to 54.7Moz in 2008.
He explained that the improvement in ore reserves was mainly because of a rise in ERPM’s underground and surface reserves while the main contributor to the increase in mineral resources was the addition of 2.2 million attributable ounces from Ergo Mining, DRDGOLD SA’s 50:50 joint venture re-treatment enterprise with Mintails SA.
Attributable mineral resources from Blyvoor were 1% higher at 20.4Moz in 2008, following an exploration programme to further define the operation’s surface resources. Attributable ore reserves from Blyvoor were 6% lower at 4.8Moz, mainly because of depletion.
Total attributable ore reserves from ERPM increased by 271% to 2.6Moz. The attributable underground reserves rose from 0.5Moz to 1.2Moz due to the conversion of the ERPM Extension 1 measured and indicated resource into proven and probable reserves, and the attributable surface reserves from 0.2Moz to 1.5Moz owing to the inclusion of the Elsburg tailings complex, which will be mined by Ergo Mining. A 5% decrease in attributable mineral resources from ERPM to 29.0Moz was a consequence of the updated evaluation model which uses the latest sampling data to evaluate ERPM and ERPM Extension 1.
Attributable mineral resources from Crown were virtually unchanged at 3.1Moz as were attributable reserves at 0.4Moz.
The ore reserves quoted are sensitive to operating costs and the gold price. The official ore reserves are quoted at $853/oz, at an exchange rate of R7.8653/$, or R208 287 per kilogram.
James Duncan, Russell & Associates
+27 11 880 3924 (office)
+27 82 892 8052 (mobile)
Investor and Media Relations
Barbara Cano, Breakstone Group International
+1 646 452 2334 (office)
Investor and Media Relations
Phil Dexter, St James's Corporate Services
+44 20 7499 3916 (office)
+44 779 863 4398 (mobile)
For more information, please visit www.drdgold.com
Many factors could cause the actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, adverse changes or uncertainties in general economic conditions in the markets we serve, a drop in the gold price, a continuing strengthening of the rand against the dollar, regulatory developments adverse to DRDGOLD or difficulties in maintaining necessary licences or other governmental approvals, changes in DRDGOLD’s competitive position, changes in business strategy, any major disruption in production at key facilities or adverse changes in foreign exchange rates and various other factors.
These risks include, without limitation, those described in the section entitled "Risk Factors" included in our annual report for the fiscal year ended 30 June 2007, which we filed with the United States Securities and Exchange Commission on 14 December 2007 on Form 20-F. You should not place undue reliance on these forward-looking statements, which speak only as of the date thereof. We do not undertake any obligation to publicly update or revise these forward-looking statements to reflect events or circumstances.